Branching Out
Hello All,
There’s a quote from Carl Jung that I really like: “Where your fear is, there is your task”.
During a recent consultation, a client mentioned that she had been wanting to start a business, but was afraid and overwhelmed by the sheer amount of (sometimes conflicting) information available. This resonated with me, as there are numerous times that I have clung to the status quo due to the fear of the unknown.
As business owners or self employed workers, most of us have taken that leap of faith. We have found and seized opportunities and have often started new ventures completely from scratch. This may have been for different reasons - for some it was a creative impulse that needed to be fulfilled while others wanted to take more control of their career path. And then there are those who are entrepreneurial by nature.
Of course, as business owners we are also prone to fall into the same patterns and stick with something that seems to be working. Change is difficult at every stage. And while change is not a necessary component of success, it is important to assess our businesses regularly to see if there are any looming threats or perhaps because the work we are doing has become routine and uninspiring.
Threats to our business can be insidious and don’t often present themselves until they have made a dent. This is often a competitor or perhaps a new technology (this is especially important in the wake of AI). Other threats can relate to costs (such as increases in the prices of materials) or a change in demand for our products or services. There is also the threat of losing a large customer or supplier (as happened to one of my clients during the semiconductor chip shortage during Covid).
Alternatively, our businesses might be doing fine but we might find ourselves back in a rut. We are no longer motivated and might be mindlessly churning out outputs while the passion to do so has been slowly withering.
All this to say, is that I think it is important to regularly assess where you are and question whether fear might be holding you back from taking on a new opportunity or branching out into an uncertain but potentially exciting direction. If there is fear, examining where it is coming from is a useful first step, and you will often a) find that it is perhaps not so scary after all and b) by simply acknowledging the fear be more comfortable stepping into the void.
Blog Post
16 Common Financial and Tax Mistakes That Affect Your Small Business’ Bottom Line
Starting a business is hard work. In addition to creating your core product or service , you also need to have a working knowledge of numerous other facets of business including marketing, IT, account
Finance Stuff:
Systems for Productivity: I have watched several videos from this YouTuber and found him to be engaging and motivational. I quite liked this one on setting up a productivity system. He also has some other videos that are worth watching.
Questions to Ask When Branching Out and Ideas to Expand: This article from NerdWallet provides some insight on when you should think about expanding and strategies that you might employ. I would add that it is important to also access the risk (both macro and micro) that you might be facing both in the short and long term.
Tax Stuff:
When Are Gifts Taxable? Usually gifts from individuals are not taxable in Canada. However, like most things related to tax, there are exemptions such as gifts from employers or gifting of a capital property. It can useful to understand these to avoid audits and penalties.
Tax Court Case on Home Office Expenses: An interesting fight between Revenue Quebec and a taxpayer regarding the (creative) measurement of their home office space.
QuickBooks Tip: Using Multiple Tabs
When working with QuickBooks Online (or any cloud based software) there are times when you want to look at two or multiple screens at once rather than clicking on back or forward. Quickbooks Online allows you to open multiple tabs at the same time.
To do this, simply right click on the second screen that you want to open and select open in new tab. Note that this doesn’t work for all clickable links in QBO (for some reason), but it is still a good time saver.
See my video on using Multiple Tabs in QuickBooks Online:
Books and Resources:
Coming Soon! Small Business and Your Payroll: If there are any questions that you have about payroll that you want included in the book, please send me an email at ronika@montrealfinancial.ca.
Small Business Tax Facts(Sole Proprietorships/Registered Businesses/Self Employed Workers)
This book helps you take control of your finances by giving you a better understanding of tax (brackets, tax rates, deductions etc), how it applies to your unincorporated small businesses and how to do your own tax return (or at least understand what your accountant does). It also includes a comprehensive breakdown of deductible expenses, by category with special sections on more complex deductions such as home office, vehicle and capital cost allowance.
FastStart Your Corporation(Corporations)
A step by step guide to starting your small business corporation, including what you need to know about incorporation, setting up your accounting and tax considerations.
QuickStart your QuickBooks(Sole Proprietorships and Corporations)
A comprehensive guide that takes you through the many features of QBO and gives you step by step instructions on how to setup and work with QBO day to day. It is ideal for beginners who have never used QBO before and also for those who are currently using it, but have questions or need guidance.
FastStart Your Business (Sole Proprietorships)
A step by step guide for anyone who is planning to start a Canadian business or become self employed (and does not want to incorporate) and wants to know what they need to do or simply has questions.
Small Business and Your Dividends (Corporations)
For incorporated small business owners who want to know more about small business dividends, the differences between salary vs dividends and which is better and step by step instructions on how to file your own dividend declarations (T5s).
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If you prefer a print version, all books are also available at Amazon . Note that print versions purchased on Amazon include a complimentary PDF - you just need to email me and include proof of purchase.
Free Resources
Business 2023 Tax Deadline Calendar
Starting A Corporation Checklist
Start Your Business Checklist
Dividend Declarations Checklist
Small Business Tax Return Checklist
QBO Set Up Checklist.
Small Business Calculators
Previous newsletters
Consultations
I also provide consultation services where I can answer your specific questions relating to your small business and/or finances, provide clarity and give you guidance. Additional details can be found here and here. Note that I no longer provide ongoing accounting or tax preparation services.
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Wishing everyone an excellent start of autumn (!!) weekend!
Ronika